The West has just agreed to stump up a load of cash for Ukraine but there is a distinct sense of deja vu around it all.
Let’s face it – Ukraine’s track record on how it manages ts economy and foreign affairs isn’t great. This is the third aid programme Kiev has signed with the International Monetary Fund in a decade and two of them have failed. The IMF has its fingers crossed that this one will not go the way of the past two. Reza Moghadam, the IMF’s top European official, tells Reuters in an interview:
They seem to be committed, they seem to own this reform programme and in that sense I am optimistic
Indeed, Ukraine’s new government has taken some brave and politically unpopular steps, allowing the currency to depreciate and announcing plans to cut gas subsidies that amount to almost a tenth of its annual GDP, according to IMF data. (Here’s a piece from Breaking Views on the shocking energy waste in Ukraine).
But there’s a long road ahead, says Luis Costa, head of CEEMEA strategy at Citi. According to Costa: